Assumptions, truths and conclusions that emerged from the conference
The work of the 2nd real estate conference "Real Estate and Greek Economy, new roads, prospects and opportunities" has been completed at the Megaron Musikis, on Friday, June 28, 2024. Below we present to you epigrammatically assumptions, truths and conclusions that emerged, as well as actual data that were submitted by the speakers.
First round (Schertsos, Stasinos, representatives of TEN BRINKE-INTRAKAT):
Geopolitical instability and the European political environment does not affect the real estate market.
Need for a more competitive Europe.
About 124,000 property transfers took place in 2023.
Continuation and optimal development is achieved by the "convergence of speeds" of the private and public sectors.
There is a 50,000-55,000 labor shortage in the construction industry.
Labor costs have increased due to lack of manpower.
B round (Arones, Manousakis, Maragoudakis)
The housing crisis is a fact.
Existing investment interest-activity for professional warehouses (logistics).
The demand for typical offices in central axes is characterized as consistently soft, while the investment interest-activity is absent (apart from the "green"-premium category).
The tourism industry is the safest investment.
Now the "generation rent" is taking shape, i.e. the generation of renters, as the desire to acquire a privately owned home is removed at the same time as the change in mentality.
Third round (Minister of Finance, representative DIMAND-Andriopoulos)
The implementation (and not the backlog) of the existing and agreed projects is the goal, and the challenge we face.
Proposal (informal) for the creation of an independent authority for the management of public real estate according to the standards of the AADE.
The "Packaging" of public properties and public-private sector cooperation will significantly contribute to their easier and more efficient utilization, offering solutions to the housing crisis.
Fourth round (Tourist-hotel real estate – Ways for sustainable development)
The "hotel property" is a performance property, i.e. an investment property, which does not require private use.
Greek tourism has been "consolidated" after being tested over the years.
The future of Greek tourism is the "value for money" options and not exclusively the "luxury" ones.
The institutional measures must be adapted according to the tourist destination and not be horizontal.
Every tourism development-investment must respect the local community.
5th round (representatives of the largest AEEAP of Greece)
Real estate investment companies are owners, investors and real estate developers at the same time.
50% of households in the US invest in AEEAP, which is not the case in Greece. There are eight AEEAPs listed on the Stock Exchange, they manage properties worth approximately 4.7 billion euros, while they have announced investments of almost 1 billion euros. Surprisingly the industry doesn't have much recognition (yet), even though it's been around since 1999.
The public sector must also contribute, especially in the field of digital transformation.
6th round (representatives of servicers)
One in four properties that come up for auction are now sold.
Anyone who has the possibility of the out-of-court mechanism prefers it by 99% over the judicial process.
In the US, the debtor comes out of the process "completely green", while in Greece it continues to remain "albeit a little red".
Legislative developments are expected within the year.
7th round (Climate crisis and real estate)
Buildings adapt to these changes in practice, the market adapts.
The green transition part of buildings needs to become more structured and measurable, which is helped by regulations such as climate law and the EU Taxonomy.
This is a transition of the entire economy, not just the real estate sector, while it involves a significant risk for the viability of the business.
The sustainability part is very expensive.
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